ESMA Letter On Third Country Regimes


The European Securities and Markets Authority has written to the European Commission in relation to additional issues concerning some MiFID II/MiFIR requirements on investor protection and intermediaries.

The letter is a follow-up to an earlier letter concerning some MIFID II/MIFIR requirements regarding trading venues.

The letter highlights a number of items, which are relevant in the context of the United Kingdom’s withdrawal from the European Union, in particular:

  • Concerns regarding the MiFIR regime for third country firms providing investment services and activities to eligible counterparties and per se professional clients;
  • Concerns regarding the MiFID II regime for third country firms providing investment services and activities to retail and professional clients on request;
  • Third country firms providing investment services and activities at the exclusive initiative of EU clients (reverse solicitation); and
  • Investment firms outsourcing critical or important functions other than those related to portfolio management to third country providers.

Source: ESMA

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